Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Q3 FY2022 Earnings Presentation
51 slides from Allcargo Logistics's earnings presentation, Feb 14, 2022
Slide 1: Exchange filing cover letter for investors' presentation
all carm 0 lngc·nu ly Jn l/f')t1or1 logistics ltd. To To Listing Compliance and Legal Regulatory Listing and Compliance BSE Limited National Stock Exchange of lndla Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G Dalal Street, Fort, Sandra Kurla Complex, Sandra (East), Mumbai - 400 0
Slide 2: Investor Presentation February 2022
INVESTOR PRESENTATION FEBRUARY 2022
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Allcargo Logistics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 4: Robust Business Growth Over 15 Years (Since Listing)
ROBUST BUSINESS GROWTH OVER 15 YEARS (SINCE LISTING) Global leader in complex Annualized Revenue (Dec06 - Dec21) 20% CAGR 16x LCL Market 19% CAGR Operating 2400 direct trade lanes Annualised EBITDA (Dec06 - Dec21) 14x Widest and Largest Container Freight Station Last 5 Yrs (FY17 - 9MFY22) Operator i
Slide 5: Key Highlights – Q3FY22
KEY HIGHLIGHTS – Q3FY22 KEY MANAGEMENT COMMENTARY: Revenue^ ₹ 58,690 mn ➢ The company continues to drive robust growth with sharp focus on asset light, digitally enabled businesses. Allcargo reported its highest ever business performance for the quarter with consolidated revenues higher by 115% YoY
Slide 6: Key Business Segments – QoQ Performance Trends
KEY BUSINESS SEGMENTS – QoQ PERFORMANCE TRENDS 52,017 4,300 43,837 3,071 Capital Employed Revenue EBITDA 29,355 ROCE* (₹ mn) (₹ mn) 909 21,593 72% (₹ mn) International Supply Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 Chain (MTO) ALLCARGO LOGISTICS (ACL) 4,007 4,137 243 2,988 Capital Employed ROCE* R
Slide 7: Key Business Segments – QoQ Performance Trends
KEY BUSINESS SEGMENTS – QoQ PERFORMANCE TRENDS ALLCARGO TERMINALS (ATL) 1,768 426 362 331 Capital Employed Revenue EBITDA 1,088 1,065 ROCE* (₹ mn) (₹ mn) 4,211 33% (₹ mn) CFS / ICD Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 # TRANSINDIA REALTY (TRLPL) 870 179 781 768 Capital Employed Revenue EBITDA 6
Slide 8: Demerger Update
DEMERGER UPDATE SCALABLE BUSINESS OPPORTUINITIES
Slide 9: Demerger to Create Strategic Business Undertakings
DEMERGER TO CREATE STRATEGIC BUSINESS UNDERTAKINGS ALLCARGO LOGISTICS (ACL) ALLCARGO TERMINALS (ATL) TRANSINDIA REALTY & LP’s (TRL) International Supply Express & Ecommerce Contract Container Freight Rental & Other annuity Chain (MTO) Logistics Logistics Stations & ICDs Businesses Asset Light Global
Slide 10: Simplified Scheme of Arrangement
SIMPLIFIED SCHEME OF ARRANGEMENT Existing Structure Allcargo Logsitics Limited TransIndia Reality & Mirror demerger resulting in Equipment Hiring / Allcargo Terminals Multimodal Transport CFS and ICD Logistics Parks Limited no change in the entitlement Leasing and Logistics Limited (Wholly Operation
Slide 11: Existing Entity Allcargo Logistics Limited (ALL)
EXISTING ENTITY ALLCARGO LOGISTICS LIMITED (ALL)
Slide 12: International Supply Chain (MTO)
INTERNATIONAL SUPPLY CHAIN (MTO)
Slide 13: Global Leader in International Supply Chain Segment
GLOBAL LEADER IN INTERNATIONAL SUPPLY CHAIN SEGMENT Global #1 in LCL consolidation Distinct value proposition to small and operating the largest global LCL medium sized forwarders who benefit network from our scale &carrier relationships Global network leads to more port Global LCL Market Share pair
Slide 14: Uniquely Positioned with Unmatched Digital & Operational Capabilities
UNIQUELY POSITIONED WITH UNMATCHED DIGITAL & OPERATIONAL CAPABILITIES CONVENTIONAL PLAYERS HAVE OPERATING NETWORK DIGITAL START-UPS BUT LACK DIGITAL CAPABILITIES LACK OPERATIONAL FOOTPRINT AND SCALE LCL FCL Air Industry is converging towards an increasing demand Global network of over 180 countries
Slide 15: Driving Growth Through Technology
DRIVING GROWTH THROUGH TECHNOLOGY DIGITAL TRANSFORMATION (# OF DIGITAL BOOKINGS) OCR For Auto- Enables instant-booking. Reduces operational processes Booking between ECU and customers by three steps Total Digital 54% Bookings Data Data Analytics on customer behaviour and requirements Other digital P
Slide 16: Digitizing Every Customer Touch-Point with ECU360
DIGITIZING EVERY CUSTOMER TOUCH-POINT WITH ECU360 Shipping Instruction Value-Added Dashboard Registration Quotation / Pricing Booking & BL Invoice Track and Trace Services and Analytics FETCH QUOTES Enter further TRACK AND TRACE TRACKING for desired lane shipment details to shipment’s Estimated of a
Slide 17: Automating End-to-End Processes
AUTOMATING END-TO-END PROCESSES 01 02 03 04 QUOTE BOOK TRACK ANALYZE TARIFF SCHEDULE SPACE CUSTOMER SERVICE FILE AUDIT MANAGEMENT COMMUNICATION ENQUIRY BOOK PICKUP, AUTO NOTIFICATION CLOSURE PLANNING QUOTE DOCUMENTATION (SI,AN) SHIPMENT TRACKING JOB PROFIT REVIEW CUSTOM CLEARANCE PROVISIONING / INVO
Slide 18: Transforming Operations
TRANSFORMING OPERATIONS Efficient, Lean, Agile and Digitally Enabled Leader in the Logistics Industry ▪ Fact based End-to-End analysis of ▪ Informed pricing decisions by using ▪ Building the future network based the network network data, such as yield and on customer needs, anticipated ▪ Awareness a
Slide 19: Consistently Driving Growth
CONSISTENTLY DRIVING GROWTH Inorganic growth: Strong Track Record Organic growth: Sales acceleration initiatives outcome July 2021 Leading neutral consolidator in the Nordic region with offices in Sweden, Norway, Finland, and Denmark +24% China January 2021 +36% JV with former South Korean agent-par
Slide 20: Unlocking New Opportunities Through Innovation
UNLOCKING NEW OPPORTUNITIES THROUGH INNOVATION Door to Door Service Unique Sea-Air combo services CHINA TO US AND EUROPE Offering Increase Market Share ▪ Offered in 52 countries globally, resulting ▪ Focus on where volume flows, e.g. India, in convenience for customers and higher Europe, Americas ma
Slide 21: International Supply Chain (MTO) - Key Financial Trends
INTERNATIONAL SUPPLY CHAIN (MTO) - KEY FINANCIAL TRENDS Volumes Revenue (₹ mn) +21% 1,25,209 2,327 2,473 2,046 +13% 84,490 +142% 1,499 1,521 66,047 1,342 52,017 43,837 21,470 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 FY20 FY21 9MFY22 Q3FY21 Q2FY22 Q3FY22 LCL (‘000 cbms) FCL (‘00 TEUs) EBITDA (₹ mn)
Slide 22: Express & Ecommerce Logistics / Contract Logistics
EXPRESS & ECOMMERCE LOGISTICS / CONTRACT LOGISTICS
Slide 23: India's Pioneer in Express Logistics
INDIA’S PIONEER IN EXPRESS LOGISTICS Network Reach Deeper Leader in Logistics Widest in Industry Customer engagements 8 out of Top 10 Auto Companies 4.1 Mn sq. ft. Pan India 735 Warehousing space Area 668 out of 739 across multiple Coverage 8 out of Top 10 offices across Indian Districts Locations P
Slide 24: Unique Integrated Network
UNIQUE INTEGRATED NETWORK Jammu & Kashmir 01 Himachal Pradesh 01 Managing one of the Industry’s widest integrated supply chain network Uttarakhand 02 Delhi 04 | 02 Punjab 04 Line Haul First-Last mile Uttar Pradesh 03 | 01 • 19 Express distribution centers • 144 Own customer convenient center Haryana
Slide 25: Express Logistics - Industry with Limitless Opportunities
EXPRESS LOGISTICS - INDUSTRY WITH LIMITLESS OPPORTUNITIES Surface + Air + Ecommerce + Contract Logistics Total Available Market is ~Rs 52,500 crs Niche Contribution in Logistics Industry Accelerated growth Opportunities ₹ Crs 21,769 11,500 ₹ 24.6k Crs FY25 2,000 2,805 ₹ 51k Crs FY25 ₹ 13.5k Crs FY20
Slide 26: Poised for Growth Through Transformation
POISED FOR GROWTH THROUGH TRANSFORMATION Key Focus Areas: Key Focus Areas: DIGITIZATION Realignment of sales team Streamlining and structure and targeted INFRASTRUCTURE assessing each line item of TALENT approach towards Key P&L. Focused Account Management, improvement in line-haul MSME and Retail.
Slide 27: Digitization
DIGITIZATION Back-end Front-end Pick Up & Delivery automation CRM system Data Science • Pickup Registration, Validation, Visibility & Monitoring Managing customer relationships Route optimization, Load • Handheld printers for real time printing of labels and enhances ability to offer planning, enabl
Slide 28: Express & Ecommerce - Key Financial Trends
EXPRESS & ECOMMERCE - KEY FINANCIAL TRENDS GKEPL - Surface Volumes (‘000 MT) GKEPL - Revenue (₹ mn) +11% +20% 260 265 3,535 239 250 3,336 2,934 3,004 178 2,371 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 No. of Employees (Gati, Consolidated) Accelerated Deleveraging (Debt -
Slide 29: Contract Logistics - Key Trends & Updates
CONTRACT LOGISTICS - KEY TRENDS & UPDATES Pan India Presence Key Update: CORE CAPABILITIES • Board of directors has approved the scheme of demerger whereby contract logistics business will get transferred to Avvashya Supply Chain Private Limited (currently wholly owned subsidiary of Allcargo), on go
Slide 30: CFS / ICD Demerged Entity 1: Allcargo Terminals Limited (ATL)
CFS / ICD DEMERGED ENTITY 1: ALLCARGO TERMINALS LIMITED (ATL)
Slide 31: Leading Pan India Player with Unmatched Network
LEADING PAN INDIA PLAYER WITH UNMATCHED NETWORK Strategically Located Assets with Robust Operational Capabilities Operational Support Static Yard Capacity of over JHAJJAR Upcoming ICD/PFT 26,000 TEUs p.a. Strategic Location of all the Assets MUNDRA 2 CFS’s (Owned + DADRI - ICD Widest pan India prese
Slide 32: Overview of CFS/ICD Market
OVERVIEW OF CFS/ICD MARKET CFS/ICD - Proxy to Indian EXIM growth All the Growth Levers in Place for Future CAGR 8-10% • Potential reforms to increase the scope of activities and expand the role of CFS’s. 22 – 25* CFSs also gaining importance due to increased number of LCL shipments CFS/ICD - Market
Slide 33: CFS/ICD - Key Financial Trends
CFS/ICD - KEY FINANCIAL TRENDS Volumes^ (‘00 TEUs) Revenue (₹ mn) 3,235 3,097 4,490 4,640 2,826 4,055 +80% +63% 1,474 1,768 817 798 1,088 1,065 FY20 FY21 9MFY22 Q3FY21 Q2FY22 Q3FY22 FY20 FY21 9MFY22 Q3FY21 Q2FY22 Q3FY22 EBITDA (₹ mn) & EBITDA Margins (%) ROCE* (%) (%) 31.0 38.0 28.3 33.3 31.1 24.1 1
Slide 34: P&E, Logistics Parks and Others: TransIndia Realty & Logistics Parks
P&E, LOGITICS PARKS AND OTHERS DEMERGED ENTITY 2: TRANSINDIA REALTY & LOGISTICS PARKS LIMITED (TRLPL)
Slide 35: Logistics Parks
LOGISTICS PARKS ➢ Allcargo has built best in class Grade-A warehousing infrastructure across key locations in India. A nationwide warehousing footprint of 6 million sq. ft. remains under development, through strong connectivity to industrial hubs and transport routes. ➢ The company has already lease
Slide 36: Engineering Solutions
ENGINEERING SOLUTIONS Cranes: Capacity Utilisation (%) • P&E segment includes Crane and container handling equipment rental and Project 75 75 transportation services. 73 • Multi-sectors serviced: Power (thermal, solar, wind and transmission lines), Oil & Gas, 69 Refineries, Cement, Steel, Ports and
Slide 37: Rental and Others - Key Financial Trends
RENTAL AND OTHERS - KEY FINANCIAL TRENDS Revenue (₹ mn ) EBITDA (₹ mn) & EBITDA Margins (%) (%) 18.1 10.5 12.7 22.5 10.0 13.4 3,508 634 3,082 ENGINEERING 2,736 PROJECT & 323 347 +6% 923 873 185 820 92 117 FY20 FY21 9MFY22 Q3FY21 Q2FY22 Q3FY22 FY20 FY21 9MFY22 Q3FY21 Q2FY22 Q3FY22 Revenue (₹ mn) EBIT
Slide 38: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM
Slide 39: Board of Directors
BOARD OF DIRECTORS Driving best practices for governance, risk assurance and processes SHASHI KIRAN SHETTY ADARSH HEGDE PARTHASARATHY V S Chairman Joint Managing Director Vice Chairman A pioneer in logistics industry and a visionary, first Associated with Allcargo Logistics since inception and A muc
Slide 40: Management Team - Allcargo Logistics
MANAGEMENT TEAM - ALLCARGO LOGISTICS SURESH KUMAR R RAVI JAKHAR DEEPAL SHAH CEO (India) Chief Strategy Officer Chief Financial Officer A seasoned industry leader with nearly 30 years A thought leader with a unique blend of A proven leader with over 20 years experience in experience in building and g
Slide 41: Management Team - ECU Worldwide
MANAGEMENT TEAM - ECU WORLDWIDE TIM TUDOR DMITRIY IOFFE SIMON SACHU CEO CCO LCL CCO, Global Air, FCL & Procurement An industry veteran with three decades of experience in Highly recognised commercial leader with rich experience An industry veteran with 20+ years experience, he has shipping and logis
Slide 42: Management Team - Gati
MANAGEMENT TEAM - GATI ADARSH HEGDE PIROJSHAW (PHIL) SARKAR HUAFREED NASARWANJI Managing Director, Gati-KWE Chief Executive Officer Chief Commercial Officer Seasoned Logistics professional acclaimed for leading CA by profession with decades of leadership Rich industry experience across integrated ex
Slide 43: Consolidated Financial Overview
CONSOLIDATED FINANCIAL OVERVIEW
Slide 44: Key Financial Highlights - Consolidated
KEY FINANCIAL HIGHLIGHTS - CONSOLIDATED Total Operational Revenue (₹ mn) EBITDA (₹ mn) & EBITDA Margins (%) PAT (₹ mn) & PAT Margins (%) (%) 8.3 6.2 6.5 6.1 6.0 7.6 (%) 4.3 2.9 3.6 3.2 0.9 5.1 1,42,962 10,842 7,241 1,04,981 68,949 73,462 6,338 55,833 60,492 5,034 4,649 4,485 3,771 2,378 2,479 2,343
Slide 45: Consolidated Income Statement - Quarterly
CONSOLIDATED INCOME STATEMENT - QUARTERLY Particulars (₹ Mn) Q3FY22 Q3FY21 Y-0-Y Q2FY22 Q-0-Q 9MFY22 9MFY21 Y-o-Y Revenue from Operations 58,691 27,347 114.6% 49,779 17.9% 1,42,962 71,488 100.0% Expenses 53,645 25,871 46,156 1,32,119 67,081 EBITDA 5,046 1,476 241.9% 3,622 39.3% 10,842 4,407 146.0% E
Slide 46: Consolidated Income Statement - Annual
CONSOLIDATED INCOME STATEMENT - ANNUAL Particulars (₹ Mn) 9M-FY22 FY21 FY20 FY19 Revenue from Operations 1,42,962 1,04,981 73,462 68,949 Expenses 1,32,119 98,643 68,428 64,464 EBITDA 10,842 6,338 5,034 4,485 EBITDA Margin (%) 7.6% 6.04% 6.85% 6.50% Other Income 316 553 413 338 Finance cost 799 1,356
Slide 47: Annexures
All CAPO rosea ANNEXURES |
Slide 48: Rationale for Demerger
RATIONALE FOR DEMERGER STRATEGIC INDEPENDENCE AND OPERATIONAL & FINANCIAL FLEXIBILITY TO DRIVE GROWTH • Simplified structure with independent listed companies with sharp management focus Independent ❖ ACL: International Supply Chain(MTO) & Express /Contract Logistics Business Undertakings ❖ ATL: CFS
Slide 49: Scheme Highlights
SCHEME HIGHLIGHTS Allcargo Logistics (ACL) to demerge its CFS/ICD division and its asset heavy Equipment, Logistics Parks business into separately listed entities. The demerger would create three focused entities targeting distinct set of growth opportunities. ACL would now focus on its Internationa
Slide 50: Key Milestones, Indicative Timelines & Approvals Required
KEY MILESTONES, INDICATIVE TIMELINES & APPROVALS REQUIRED Upto ~3 months Upto ~8-10 months ~2-4 months Regulatory Filings & NCLT Filings & Board Approval ROC Filing Approvals Approvals • Approval of the • SEBI, Stock exchanges: • Filing of Scheme • ROC Filing transaction and other BSE & NSE, Lender
Slide 51: Thank You
Thank You Ankit Panchmatia Investor Relations +91-99870 71049 ankit.panchmatia@allcargologistics.com Payal Dave +91-98199 16314 Payal.Dave@linkintime.co.in 50